Though internet advertising has a lot of features that are interesting, you might be wondering how it fares in terms of being cost effective. After all, a marketing strategy is only as useful as it is affordable. Google AdWords acknowledges this fact and makes it as easy as possible for you, the advertiser to remain in control of your budget.
AdWords Budget Management Best Practices
One of the very first steps to creating an AdWords campaign is setting a daily budget you are comfortable with. In addition, you can set the maximum amount you’re willing to spend on a single click, or leave that decision to the AdWords system. In either case, the system will never spend beyond your daily budget, keeping you in control of how much is spent. Both daily budget and max cost-per-click can be changed at any time.
But how do you get the most out of your AdWords investment? Stay tuned, because in this article we’ll discuss three tips for doing exactly that:
- Match your budget to your business goals.
- Monitor how your budget is being spent.
- Invest in what works.
Match Your Budget to Your Business Goals
No two AdWords campaigns are exactly alike. Some, for example, run all year round and provide general advertising for your entire company, while others may only be active for a few months, a season or even only a single week to advertise a special sale or seasonal products.
Whatever the case, you’ll want to try and balance the budget you set for your campaign with the overall value that campaign provides to your business. If possible, you want your budget to be as low as possible while still maintaining the same amount of value to your business. This will increase your profits and maximize your ROI.
Monitor How Your Budget is Being Spent
If you own or operate a business, you know that cash flow is crucial to being able to keep things running smoothly. AdWords is no different. If you want to make sure that your ads continue to run and your campaign is performing as expected, you’ll want to keep an eye out for potential problems.
Some tell tale signs of an issue with your campaign’s funds include:
- AdWords tells you that your campaigns are “limited by budget”.
- You get fewer leads, clicks or conversions than you’re expecting from the amount you’ve spent
- You have expensive, irrelevant keywords with low CTR (click-through rate) and conversion rates.
If you can find and correct whichever of these or any other roadblocks are getting in the way of your campaign, you’ll be more successful and save money in the process.
Invest in What Works
In addition to the basic controls you set on spending at the outset of your campaign, daily budget and max CPC, AdWords provides advertisers with a plethora of information to come to informed decisions about their spending on AdWords.
ROI Through Effective AdWords Budget Management
By reviewing that data, presented to you in the various reports in AdWords, you’ll be able to make an informed decision when it comes to allocating your spending. This mostly relies on the points made in previous articles about experimenting. Try different ad formats and placements, tinker with keywords and phrasing to get your messages just right. Once you’ve found the secret formula to success, make sure to invest most of your resources there. This will maximize your ROI and help your campaigns perform better without any additional spending on your part.
In conclusion, monitoring your AdWords account and the feedback it gives you and matching your budget to your business goals are simple, easy things you can do to make the most of your AdWords investment.